- Question 1. SkyTech Ltd., operating in the aerospace technology sector, is considering raising 200 million in the bond market to finance the acquisition of a satellite manufacturing facility. The debt will mature in four years, with interest payments made annually. The current market value of SkyTech Ltd.'s equity stands at 1.5 billion, and the company maintains a market gearing ratio of 30% (market value of debt to total market value of the firm). SkyTech Ltd.'s existing debt has an average annual coupon rate of 4% and is set to mature in three years . The company's effective tax rate is 30% The prevailing yield curve indicates that three-year government bonds yield 3.6% , while four-year bonds yield 5.2% . The estimated credit risk spread is 50 basis points. If the bond issuance proceeds, the company's bankers advise that a 90 basis point spread will be necessary to ensure full subscription by institutional investors at a nominal value of 100 1) Advise on the coupon rate that should be applied to the new debt issue to ensure that it is fully subscribed. 2) Estimate the current and revised market valuation of Sea Cruise Co.'s debt and the increase in the company's effective cost of debt.
- Question 2.AeroTech Inc is evaluating an investment in a joint venture to establish a state-of-the -art aircraft maintenance hub that will provide services to leading international airlines. The project is designed to operate for 30 years requiring an initial investment of 90 million and is projected to yield a net present value (NPV) of 10 million for AeroTech Inc. The project lead contends that the reported NPV of 10 million does not fully capture the project's value, as it excludes the embeddec option allowing AeroTech Inc to sell its stake in the venture back to its partner for 40 million at any point within the first ten years. The standard deviation of returns is estimated at 45% per annum, while the risk-free interest rate stands at 5% per annum.
- Question 1 . SkyTech Ltd , operating in the aerospace technology sector, is considering raising 200 million in the bond market to finance the acquisition of a satellite manufacturing facility. The debt will mature in four years, witr interest payments made annually. The current market value of SkyTech Ltd.'s equity stands at 1.5 billion, and the company maintains a market gearing rati of 30% (market value of debt to total market value of the firm SkyTech Ltd.'s existing debt has an average annual coupon rate of 4% and is set to mature in three years . The company's effective tax rate is 30% The prevailing yield curve indicates that three-year governme bonds yield 3.6% , while four-year bonds yield 5.2% . The estimated credit risk spread is 50 basis points. If the bond issuance proceeds, the company's bankers advise that a 90 basis point spread will be necessary to ensure full subscription by institutional investors at a nominal value of 100 1) Advise on the coupon rate that should be applied to the new debt issue to ensure that it is fully subscribed. 2) Estimate the current and revised market valuation o Sea Cruise Co.'s debt and the increase in the company's effective cost of debt.
- Question 1 . SkyTech Ltd., operating in the aerospace technology sector, is considering raising 200 million in the bond market to finance the acquisition of a satellite manufacturing facility. The debt will mature in four years, with interest payments made annually. The current market value of SkyTech Ltd.'s equity stands at 1.5 billion, and the company maintains a market gearing ratio of 30% (market value of debt to total market value of the firm). SkyTech Ltd.'s existing debt has an average annual coupon rate of 4% and is set to mature in three years . The company's effective tax rate is 30% The prevailing yield curve indicates that three-year government bonds yield 3.6% , while four-year bonds yield 5.2% . The estimated credit risk spread is 50 basis points. If the bond issuance proceeds, the company's bankers advise that a 90 basis point spread will be necessary to ensure full subscription by institutional investors at a nominal value of 100 1) Advise on the coupon rate that should be applied to the new debt issue to ensure that it is fully subscribed. 2) Estimate the current and I revised market valuation of Sea Cruise Co.'s debt and the increase in the company's effective cost of debt. Your answers should contain clear calculations in MS Excel and assumptions made. Usage of ChatGP I and other Al tools
- On September 19,2020 Mandella Co purchased machinery for 950,000 Salvage value was estimated to be 50,000 . The machinery will be depreciated over eight years using the sum-of-the- years'-digits method. If depreciation is computed on the basis of the nearest full month, Mandella should record depreciation expense for 2021 on this machinery of a. 96,875 b. 102,257 87,500 d. 193,750 .
Помощь с деловыми заданиями
Написание стандартного делового задания никогда не было легкой задачей для большинства молодых людей. Требуется хорошее понимание темы задания, вида и направления бизнеса; а также разработать идеальный план и структуру содержания задания и приступить к написанию основного текста, а также к корректуре текста на более позднем этапе.
Поэтому они часто ищут профессиональных помощников по выполнению заданий, чтобы получить хорошие идеи. Будь то ввод каких-либо инструкций для ИИ, чтобы получить структуру статьи, или обращение к нему за помощью для получения привлекательных тем. Вы можете выбрать нас для мгновенной разработки непревзойденных качественных решений.